Julius Baer has agreed to divest its domestic Brazilian wealth management business, Julius Baer Brasil Gestão de Patrimônio e Consultoria de Valores Mobiliários (Julius Baer Brazil), to Banco BTG Pactual in a deal valued at about CHF91m ($100m).
Following the divestment, the Swiss wealth management group will maintain its service to Brazilian clients through its international operations. This will leave its Brazil international business unaffected.
The group’s presence in the Americas and Iberia region spans Mexico, Chile, Uruguay, Colombia, and Spain.
Julius Baer Brazil is an independent wealth manager catering to high- and ultra-high-net-worth clients in the country. It has offices in São Paulo, Belo Horizonte, and Rio de Janeiro.
The wealth management unit employs a team of experienced relationship managers and investment professionals. As of 30 November 2024, it managed assets totalling CHF9bn ($9.9bn).
The deal is anticipated to be 30 basis points accretive to Julius Baer’s common equity tier 1 (CET1) capital ratio upon completion.
Established in 1983, BTG Pactual specialises in investment banking, corporate lending, and wealth and asset management, among other services.
The firm managed more than $335bn in client assets as of September 2024. It has a market value of $23bn and total assets of $112bn.
Julius Baer focuses on advising sophisticated private clients. At the end of October 2024, it reported assets under management of CHF480bn ($528.1bn).
Julius Baer Americas and Iberia head Carlos Recoder said: “Following a thorough review of our domestic business in Brazil over the past 12 months, it was concluded that for the benefit of our clients it is important to preserve the multi-family office approach, while further enhancing investment capabilities and upgrading technology.
“The acquisition of our domestic Brazilian franchise by BTG, a leading domestic financial institution, makes this possible and allows to deliver a compelling and differentiated value proposition for our clients and employees.”
Subject to customary regulatory approvals, the transaction is expected to be completed in Q1 2025.
